Bank of Canada still has time to pause: Dawn Desjardins

Dawn Desjardins, Chief Economist at Deloitte Canada, talks with Financial Post’s Larysa Harapyn about how the Bank of Canada still has time to pause.

[shellywhite]

I am new to the stock market. Every stock that I bought so far, I was out of luck because I bought them when they were expensive. I feel I missed out on all the stock opportunities so far for the tech stocks.I believe having 175K yearly income would be a good investment so I want to plug all my savings into the stock market. I know this sounds a bit dull but I would like to know if I should learn investing or let somebody else (more capable like a FA) do it for me? Please share your thoughts. I am kind of tired of searching for a good stock to buy and losing all the good opportunities.

[jaredwebster]

No they don't have time for a pause. If they pause inflation works it's way from the volatile headline inflation into the deep sticky core inflation. They are already behind. It starts in the imports and energy then into goods and then into services. If they allow inflation to remain higher with low unemployment, high GDP, inflation moving up again, house prices going up, it's just going to move us closer to stagflation in the end. They need to keep pushing it up.

[Iron_Shepherd]

How do you figure big ticket spending increases when everyone is struggling to pay for groceries? Please explain that one.

[Lookover]

Lay off are starting to happen, cost cutting will continue.

[philshyu]

As Milton Friedman pointed out, inflation is caused by too rapid growth in money supply. Our money supply exploded during the pandemic and we’re seeing the effects of it now. Raising interest rates can help to reduce money supply a bit, but it’s a very slow process. Government fiscal policy is working against it, as it is also our government spending like drunken sailors that caused the money supply to explode. Actually they really put drunken sailors to shame. In order for there to be a real reduction in inflation, the government needs to not only stop deficit spending, but also start paying back its debt. Of course we all know that’s never going to happen under a liberal NDP coalition. 😢

[dirtlump]

Absolute INSANITY !
We have a currency debasement based cpi inflation metric unfolding as unprecedented in history Real Estate driven DEBT levels compromise GDP in ever higher percentages of that GDP being DEBT Instrument expansion and here we get a skin in the game "talking head" espousing all's well
Get

[alessandroferri]

Canada spending went up cause everything is more expensive.. car sales are down, homes down,